Who Can Invest in Private Placement May Be Subject to Change

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U.S. SEC to look at rule on who can buy riskiest securities

The requirements regarding which investors are eligible to participate in private placements may be subject to change during a SEC review. The regulator will examine whether the criteria to be an accredited investor should change to reflect inflation. The current rule is that an investor has to make at least $200k a year or have $1 million in assets not including property. This rule was made in the 1980’s and has not been updated since. The SEC maintains that these illiquid securities transactions should only be available to accredited retail investors.